Vietnam Insight

▶ In contrast to negative news on the world market, VN-Index recorded a spectacular against-the-current session when it ended with an increase of nearly 9 points, although the level of differentiation between industry groups was quite high. VIN Group stocks alone contributed almost all of the increase in points, combined with the Industrial Park sector which showed positive movements, while other sectors mostly decreased or remained unchanged. Liquidity did not fluctuate much and foreign investors net sold slightly, which were the highlights of today.

▶ At the end of the trading session, VN-Index increased by 8.83 points (+0.65%), reaching 1,358.18 points; HNX-Index increased by 0.35 points (+0.15%), reaching 227.42 points. Market liquidity reached 24.2 trillion VND, which was equivalent to about 988 million shares traded. Foreign investors net sold with a slight value of 166 billion VND, mostly concentrated in VCI, VNM and EIB. On the other hand, VIC, HPG and GEX were the typical net-bought stocks.

▶ Technical perspective: The market recorded an adjusting session to retest MA20 before cash flow participated to support the price. The liquidity increased relatively large but market index value gradually recovered, showing that although selling pressure increased, the cash flow still managed to support the price when VN-Index fluctuated near the support zone of 1,335. Currently, the market has successfully tested MA20 and needs to attract strong cash flow to complete the new uptrend movement.

- In the positive case: If the index manages to maintain the EMA50 when facing of short-term profit-taking pressure from the market, along with positive updates from tax negotiations from Vietnam; then this will open up a positive signal to help investors confidently disburse in the upcoming time.

- In the base case: If Vietnam has no new progress on tax agreements, the main trend will still be trading sideways and waiting for a clearer confirmative signal from the market.

Strategy: Investors should temporarily stop buying new stocks that have increased a lot, because cash flow can take profits and switch to stocks that are trading below MA200/MA50. For new positions, priority can be given to stocks among the real estate and banking sectors that are in low price ranges, accompanied with tight accumulation bases. However, the disbursement ratio should also be kept low.